Appraisal myths debunked
It is enforced by the government that a real estate appraiser must be state-licensed to write appraisals for federally-related property transactions in Oklahoma. You also have the right to acquire a copy of the finished report from your lender. Contact OK Appraisals if you have any questions about the appraisal procedure.
Myth: The value that is ascertained by the appraiser should be the same as the market value.
Fact: While most states back the concept that assessed value approximates estimated market value, this generally is not the case. Examples include when interior reconstruction has occurred and the assessor has not seen the improvements, or when homes in the vicinity have not been reassessed for an prolonged period.
Myth: The buyer or the seller will have leverage in the value of the house depending upon for whom the appraiser is working.
Fact: The appraised value of the home does not affect the payment of the appraiser; as a result, the appraiser has no preconceived interest in the opinion of value of the home. Obviously, he will complete his services with impartiality and objectivity regardless for whom the appraisal is created.
Myth: Market value will approximate replacement cost.
Fact: Market value is arrived at through what a willing buyer would be interested in paying a willing seller for a certain home, with neither being under duress to buy or sell. The dollar amount necessary to rebuild a home is what shows the replacement cost.
Myth: Certain formulae, like the price per square foot, are the ways appraisers use to determine the price of a property.
Fact: Appraisers complete an exhaustive analysis of all factors pertaining to the worth of a house, including its location, condition, size, proximity to facilities and recent sale prices of comparable houses.
Myth: In a robust economy - when the worth of properties in a given county are found to be rising by a certain percentage - the costs of individual houses in the area can be expected to increase by that same percentage.
Fact: Any worth at which an appraiser concludes in regards to a certain home is always individualized, based on certain factors pulled from the data of comparable homes and other considerations within the house itself. This is true in good economic times as well as poor.
Have other questions about appraisers, appraising or real estate in Oklahoma County or Oklahoma City, OK?Contact OK Appraisals
Myth: The home's exterior is determinate of the actual value of the house; it is unnecessary to do an interior inspection.
Fact: There are a multitude of different variables that conclude property value; these factors include area, condition, improvements, amenities, and market trends. There's no real way to get all of this data from just examining the house from the outside.
Myth: Because consumers fund appraisals when applying for loans to buy or refinance their home, they own their appraisal report.
Fact: The document is, in fact, legally owned by the lending company - unless the lender "relinquishes its interest" in the document. Home buyers have to be given a version of the document upon written request due to the Equal Credit Opportunity Act.
Myth: Home buyers need not be concerned with what is in their report so long as it meets the needs of their lending company.
Fact: It is very important for consumers to look at a copy of their appraisal report so that they can verify the accuracy of the document, in case they need to question its veracity. Remember, this is probably the most expensive and important investment a consumer will ever make. An report can double as a record for the future, containing a great deal of information - including, but certainly not limited to the legal and physical description of the property, square footage measurements, list of comparable properties in the neighborhood, neighborhood description and a narrative of current real-estate activity and/or market trends in the area.
Myth: There is no reason to hire an appraiser unless you are trying to get an estimate of the value of a house during a sales transaction involving a lender.
Fact: Ordering an appraisal can fulfill a variety of requirements depending on the designations and certifications of the appraiser involved; appraisers can provide a variety of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.
Myth: An appraisal report is no different than a home inspection report.
Fact: Appraisal reports are nothing like a home inspection. The point of an appraisal report is to find an opinion of fair market value during the appraisal process and the production of the appraisal. The purpose of a home inspector is to approximate the condition of the property and its major components, then create a report on their inspection.